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Iraq and the Dutch disease
1/9/2015 0:00
To make use of international experiences
Dutch disease or the so-called resource curse is a case of laziness and career inaction affects countries that detect the presence of natural resources in their territories are motivated to pursue a lifestyle Bzkha and consumer turning of the State of productivity to a rentier state.
The state rentier is a state that does not get their revenues through production and work, but rather depends on the availability of land and natural resources (such as oil, gas, gold and other metals) or geographical location of the state, which makes it a trade corridor for passenger ships such as the Suez Canal in Egypt or oil pipelines and other. This is what these countries makes it a captive global oil markets and determine their budgets on the basis of price. When prices increase the budget was luxurious and if prices dropped lived state austerity and this is what she experienced the Netherlands when the discovery of oil and neglected other resources What led them to strong economic deterioration after that scarce oil revenues and consumed. What is happening in Iraq than what happened in the Netherlands in the seventies of the last century and that what happens may exceed all expectations, it is strange that repeat such a mistake in a country like Iraq, which oil was discovered decades ago and have minds to be reckoned with contributed and another in the evolution and development of the economy and aspects another of life around the world.
It is worth mentioning that Iraq has filed ninth rank among the countries most highest degrees of natural resources in the world and owns in addition to oil and natural gas and liquefied there is mercury, a rare material and expensive, but it neglected and phosphate, iron, Sulfur adoption of Iraq on oil exports led him to neglect all other resources have been better its development, such as the agricultural sector, which was in the past and even the eighties of the last century constitutes the largest percentage of the proceeds and then the development of industry to some extent as they were not competing countries Industries advanced but it was good at the local level and that there are other sectors was possible if exploited to generate profits abundant, including the tourism sector, Iraq is a rich variety of tourism comes from the geographical diversity of the country where you have mountains, plains, desert, rivers and marshes that are unique natural phenomenon of its kind and the only in the world, and perhaps the transport sector was a active role given the location of Iraq's geographical and especially if what has been river transport
activation've been taking the Iraqi economy to deteriorate gradually since the Iran-Iraq war and worsened after the imposition of the economic embargo on Iraq in the nineties of the last century and after the Iraq entered the current century crisis greater than absorbed Vantqalh from dictatorship to democratic rule was Kantqal article from fire to ice water and was flopping result of twelve years of exchange passage and extravagance and budgets explosive without achievement is noteworthy not succeed only an economic crisis
great.
It is unfortunate that the Iraqi state policy that have been neglected all these goods and relied on oil only has strengthened the Dutch disease and led to the entry of Iraq a period of economic decline and the fiscal deficit may result in the coming days to reduce the Iraqi dinar exchange rate against the dollar for this on the Iraqi government to adjust the course and develop solutions strategy reconsider the life of other sectors and establish economical The yield is an investment of wealth and other resources that Iraq has omitted and invest oil revenues to develop other sectors, provided that eliminate the rampant corruption in the state or at least in defiance of it, otherwise the economic situation will worsen more and more.
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1/9/2015 0:00
To make use of international experiences
Dutch disease or the so-called resource curse is a case of laziness and career inaction affects countries that detect the presence of natural resources in their territories are motivated to pursue a lifestyle Bzkha and consumer turning of the State of productivity to a rentier state.
The state rentier is a state that does not get their revenues through production and work, but rather depends on the availability of land and natural resources (such as oil, gas, gold and other metals) or geographical location of the state, which makes it a trade corridor for passenger ships such as the Suez Canal in Egypt or oil pipelines and other. This is what these countries makes it a captive global oil markets and determine their budgets on the basis of price. When prices increase the budget was luxurious and if prices dropped lived state austerity and this is what she experienced the Netherlands when the discovery of oil and neglected other resources What led them to strong economic deterioration after that scarce oil revenues and consumed. What is happening in Iraq than what happened in the Netherlands in the seventies of the last century and that what happens may exceed all expectations, it is strange that repeat such a mistake in a country like Iraq, which oil was discovered decades ago and have minds to be reckoned with contributed and another in the evolution and development of the economy and aspects another of life around the world.
It is worth mentioning that Iraq has filed ninth rank among the countries most highest degrees of natural resources in the world and owns in addition to oil and natural gas and liquefied there is mercury, a rare material and expensive, but it neglected and phosphate, iron, Sulfur adoption of Iraq on oil exports led him to neglect all other resources have been better its development, such as the agricultural sector, which was in the past and even the eighties of the last century constitutes the largest percentage of the proceeds and then the development of industry to some extent as they were not competing countries Industries advanced but it was good at the local level and that there are other sectors was possible if exploited to generate profits abundant, including the tourism sector, Iraq is a rich variety of tourism comes from the geographical diversity of the country where you have mountains, plains, desert, rivers and marshes that are unique natural phenomenon of its kind and the only in the world, and perhaps the transport sector was a active role given the location of Iraq's geographical and especially if what has been river transport
activation've been taking the Iraqi economy to deteriorate gradually since the Iran-Iraq war and worsened after the imposition of the economic embargo on Iraq in the nineties of the last century and after the Iraq entered the current century crisis greater than absorbed Vantqalh from dictatorship to democratic rule was Kantqal article from fire to ice water and was flopping result of twelve years of exchange passage and extravagance and budgets explosive without achievement is noteworthy not succeed only an economic crisis
great.
It is unfortunate that the Iraqi state policy that have been neglected all these goods and relied on oil only has strengthened the Dutch disease and led to the entry of Iraq a period of economic decline and the fiscal deficit may result in the coming days to reduce the Iraqi dinar exchange rate against the dollar for this on the Iraqi government to adjust the course and develop solutions strategy reconsider the life of other sectors and establish economical The yield is an investment of wealth and other resources that Iraq has omitted and invest oil revenues to develop other sectors, provided that eliminate the rampant corruption in the state or at least in defiance of it, otherwise the economic situation will worsen more and more.
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